Juniper Research, a UK-based consultancy, has recently released a study, labeled “The Future of Cryptocurrency: Bitcoin & Altcoin Trends & Challenges 2018-2023.“ The report claims that the end might be near for the crypto markets amid decreasing transaction volumes.
The researchers took an in-depth look into the whole crypto ecosystem, focusing on its numerous layers, such as miners, exchanges, payment processors and wallet providers. They have also analyzed key market capitalization trends and regulatory developments in major markets, such as the United States, China, Korea, Japan and Europe.
Juniper have also looked into social matters like crypto acceptance and user awareness of the basic principles of virtual currencies. Researchers have dedicated sections to assessing main causes of volatility (security issues, regulation, “forking”, etc.) and have also provided a crypto exchange index, comparing the services of 14 leading digital asset exchanges.
The researchers estimate that daily transaction volumes for bitcoin have contracted from around 360,000 a day in late 2017 to 230,000 in September 2018. Daily transaction values have decreased even more dramatically in the same period – from $3.7 billion to just $670 million.
The whole market has shrunk significantly as well. In the first quarter of 2018, crypto transactions amounted to around $1.4 trillion, while the figure in the same period a year prior was slightly less than $1.7 million. The second quarter has seen a dramatic slump, with transaction values falling by 75 percent and the market cap contracting to less than $355 billion. At one point in January, the crypto industry was worth almost $800 billion.
In the whitepaper, accompanying the report, Juniper stated that, “Based on activity during the first half of Q3, Juniper estimates a further 47 percent quarter-on-quarter drop in transaction values in that quarter […] In short, given our concerns around both ...